The Firm represented Summit Materials, Inc. (NYSE: SUM) in connection with a registered offering of 10,000,000 shares of Summit’s class A common stock at a public offering price of $24.05 per share, resulting in aggregate gross proceeds of $240.5 million. Summit also granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of class A common stock. Summit used all of the net proceeds from the offering to purchase newly issued limited partnership units from Summit Materials Holdings L.P., its direct subsidiary. Summit intends to cause Summit Holdings to use a portion of the proceeds to acquire two materials-based companies for a combined purchase price of approximately $110 million in cash.
Summit Materials is a leading vertically integrated materials-based company that supplies aggregates, cement, ready-mix concrete and asphalt in the United States and British Columbia, Canada. Summit is a geographically diverse, materials-based business of scale that offers customers a single-source provider of construction materials and related downstream products in the public infrastructure, residential and nonresidential, and end markets.
The Simpson Thacher team included Edgar Lewandowski, Ed Tolley, Ben Heriaud, Daniel Areshenko, Jessie Chen and Scott Rudin (Capital Markets); Gary Mandel and Drew Purcell (Tax); Greg Grogan and Jennifer Pepin (Executive Compensation and Employee Benefits); Michael Isby (Environmental); and James Rapp and Joia Lee (Public Company Advisory Practice).